Recently, speculative stocks like Kodak have also been in a frenzy, after soaring more than 1000% in the short term due to the US government’s $765 million pharmaceutical raw material loan agreement. In addition, the stock prices of bankrupt companies such as Hertz also changed. < / P > < p > the CNN business fear & green index, which measures investor sentiment, is not far from the level of extreme greed. < / P > < p > this makes it even more critical for leaders of the White House and Congress to reach an agreement on more stimulus packages, which are now deadlocked. “The U.S. labor market continues to show signs of stabilization, but calling it ‘healing’ is a bit of an exaggeration,” said Samuel rines, chief economist at Avalon investment and advisory < / P > < p > “due to the large amount of transfer payments provided by the government, the economy has not fully felt the economic consequences of this level of unemployment.” “As the ‘surge’ of payments expires, the U.S. economy will begin to feel more severe pain,” Raines said (Note: transfer payment refers to the expenses paid by the government or enterprises to individuals free of charge to increase their income and purchasing power. For example, the relief funds provided by the U.S. government during the outbreak of the new epidemic.) Marc Evans, an analyst at FactSet, said profits of Companies in the S & P 500 index plummeted nearly 34% in the second quarter, the worst decline in five years. Sales fell nearly 9%, the biggest drop in nearly four years. Barry Bannister, head of institutional equity strategy at stifel, said that adding all these factors together would create a market that seemed overheated. In a recent report, he wrote that the S & P 500 may now be 10% overvalued. < / P > < p > Bannister is concerned that investors have underestimated the risk of another surge in coronavirus cases, which will cause more damage to the job market and profit growth later this year. He also believes that the earnings forecast for 2021 is too high and needs to be revised downward. Currently, technology stocks such as apple, Amazon and Microsoft continue to drive the market higher thanks to strong earnings, but this may not last forever, and even quality companies may become too expensive. LORI calvasina, head of US equity strategy at RBC Capital Markets, warned in a report: “the valuation of the S & P 500 index keeps us up all night.” He added that the recent rise in technology stocks reminiscent of the NASDAQ Internet bubble 20 years ago.